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    Question

    At which rate RBI lends to commercial banks for short

    period?
    A Repo Rate Correct Answer Incorrect Answer
    B Bank Rate Correct Answer Incorrect Answer
    C Reverse Repo Rate Correct Answer Incorrect Answer
    D MSF Correct Answer Incorrect Answer
    E None of the Above Correct Answer Incorrect Answer

    Solution

    Repo rate  is the rate  at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Repo rate  is used by monetary authorities to control inflation.

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